Blackstone Pays Out About 85% of Its Distributable Earnings, so Its Dividend Changes Every Quarter
Most names in the asset management business do things a little bit differently than this one.
Blackstone, an alternative investment management firm, pays out a preset percentage of its profits each quarter, resulting in fluctuating dividend payments. Unlike other investment management companies that commit to a minimum quarterly dividend, Blackstone's dividend changes with its earnings each quarter. This is due to the company's reliance on management fees, which are predictable but not perfectly consistent, as market conditions and operating costs can change.
The dividend Blackstone pays is typically 85% of its distributable per-share earnings. While this provides potential capital appreciation and diversification benefits, investors seeking a predictable dividend income may want to consider other options like T. Rowe Price or Franklin Templeton.
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